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Govt. under IMF microscope while RW returns to political stage as GR notes conspiracy theories

Govt. under IMF microscope while RW returns to political stage as GR notes conspiracy theories

10 Mar 2024 | Black Box By Capt. Vasabha


  • IMF delegation meets RW; Govt. presents Action Plan on Governance Diagnostic Assessment
  • Additional Rs. 232 m per month for CBSL pay hike, issue over legality of hike raised in Parliament
  • Low turnout at SLPP group meeting chaired by RW; Dep. Speaker asks Prez to look into reasons
  • SLPP conundrum worsens over candidate for Prez. Polls; Prasanna threatens to leave the party
  • Split in SLPP visible at Namal’s Divulapitiya meet; Prasanna absent, organisers meet at Prez. Office
  • Basil’s begins work to rally SLPP; party turns to Dhammika for 2024 and Namal for 2030 presidency
  • RW, MR, Basil meet to discuss political situ; Basil outlines party stance, displeasure over dissidents
  • Gota’s conspiracy theory gets Russians’ questions; Vajira to respond with another book next week
  • Maithripala vows to launch ‘chair’ alliance amidst obstacles; new officials’ appointments this week
  • JVP/NPP becomes common enemy of all parties; AKD outlines economic plans, revenue generation
  • AKD to travel to Canada; JVP/NPP explore possibility of naming AKD as prime ministerial candidate


While being on a path to economic recovery, Sri Lanka continues to be full of distractions, which politicians hope will keep the masses otherwise occupied – at least for a while – instead of demanding governance and accountability from their leaders. The continuous distractions spurned by politicians that kept the general public occupied in the past even resulted in Sri Lanka at one point being likened to a land of lotus eaters by some.

However, following the ‘Aragalaya’ people’s protest in 2022, the general public seems quite aware of the state of the country’s governance and the need to continuously demand accountability. 

It was interesting to see several such distractions take place last week. These distractions came in the form of book launches, transforming the country into a book lovers’ paradise, as well as the return of ruling Sri Lanka Podujana Peramuna (SLPP) theoretician, Basil Rajapaksa, to the country. 

However, the general public did not seem to be affected by the political anecdotes that were dished out last week despite one book – former President Gotabaya Rajapaksa (GR) on a conspiracy theory – resulting in the creation of many satirical memes and posts being shared widely on social media platforms.

There were three key books related to Sri Lanka’s political landscape that were launched last week.

The first was by senior politician, Samagi Jana Balawegaya (SJB) MP Imthiaz Bakeer Markar, who launched his biography on Tuesday (5), followed by a book of caricatures of President Ranil Wickremesinghe compiled by United National Party (UNP) MP Vajira Abeywardena on Thursday (7), and GR’s book that hit the bookstores on the same day.

The three books depicted different perspectives of the country’s political culture. 

Bakeer Markar’s book launch saw the speech delivered by former Director General of the Government Information Department Dr. Ranga Kalansooriya giving much food for thought. Kalansooriya noted that Sri Lanka was a failed state since the inability of a country to duly enforce its laws is considered as a sign of a failed state. He said this in reference to the inaction by the authorities over the Supreme Court verdict that had named individuals responsible for the country’s economic downfall. He further noted the need to redefine Sri Lanka. “Focus should be on building a new Sri Lanka. We need to think fresh. We need to instil accountability in this country,” he added.


IMF review


On the topic of economic collapse and accountability, the ongoing review of the Extended Fund Facility (EFF) granted to Sri Lanka by the International Monetary Fund (IMF) is also focused on Sri Lanka’s action on the economic and governance diagnostic of the country that was released by the fund last year.

The President’s Media Division (PMD) in usual fashion issued a release soon after the IMF delegation’s meeting with President Wickremesinghe, who is also the Finance Minister, that the IMF sees the country to be improving.

The Finance Ministry has meanwhile unveiled the Government Action Plan, which was prepared based on the Governance Diagnostic Assessment (GDA) furnished by the IMF.

State Minister of Finance Shehan Semasinghe had posted on X (formerly Twitter) that this Action Plan further demonstrated the Sri Lankan Government’s commitment to building a sustainable economy and good governance in the country.

Meanwhile, President Wickremesinghe stated that he intended to convene a meeting on Monday (11) with political party leaders, including those from the Opposition, to contribute ideas in line with the ongoing discussions with the IMF. 

However, Opposition political parties are yet to officially announce their acceptance of Wickremesinghe’s invitation.


CBSL under fire


While the IMF is focused on improvements to Sri Lanka’s economy through austerity measures and good governance, the recent move by the Central Bank of Sri Lanka (CBSL) to increase salaries of the bank’s staff amidst an economic crisis continued to receive flak during the past week.

The Cabinet had discussed the CBSL salary hike on Monday and had called on the bank to explain to Parliament the 70% salary increase the bank officials had approved for themselves. Ministers had expressed their objections over the recent pay hike when CBSL officials were summoned before the Cabinet.

Officials from the CBSL had given reasons that had prompted the move, but the ministers had been of the view that it was not appropriate to do so, given the country’s current financial situation.

On Tuesday (5), Speaker Mahinda Yapa Abeywardena had led a delegation of party leaders to question Central Bank officials regarding the controversial salary increase and they had informed the Central Bank officials that it was unfair of them to increase their salaries at a time when ordinary citizens were undergoing various hardships.

The party leaders had been critical of the fact that the salary hike amounted to an additional Rs. 232 million per month and had voiced concerns over the timing of the raise.

However, a significant bone of contention had arisen over the legality of the salary hike. While Central Bank officials had asserted that the raise had been carried out in accordance with a signed agreement, doubts were raised regarding the registration of this collective agreement with the Labour Ministry. This discrepancy had sparked a legal dispute, further complicating the matter.

The party leaders had also told the CBSL officials that the bank had been converted into an independent body to make independent decisions on the economy and not to increase salaries at the institution.


RW’s rally


Amid the focus on the economy, President Wickremesinghe will today (10) hold his first public rally since assuming office.

UNP Assistant Leader Akila Viraj Kariyawasam is organising the event in Kuliyapitiya under the theme ‘Reality’ and it will take place at the municipal grounds from 2 p.m.

According to Kariyawasam, the ‘Reality’ programme is aimed at providing political support to the President’s ongoing economic programme.

President Wickremesinghe, Kariyawasam, Ruwan Wijewardene, Vajira Abeywardena, Ravi Karunanayake, Palitha Range Bandara, Sagala Ratnayaka, Harin Fernando, Manusha Nanayakkara, and Navin Dissanayake are expected to address today’s rally.


Low turnout


Meanwhile, the Government parliamentary group that had met last week under President Wickremesinghe had recorded a low turnout. It is learnt that only around 45-50 members of the ruling SLPP had attended the meeting on Monday (4).

While SLPP Leader, former President Mahinda Rajapaksa (MR) had attended the group meeting, many SLPP MPs had not been present. The low turnout was pointed out by Deputy Speaker Ajith Rajapakse during the meeting. The Deputy Speaker had called on the President to look into the reason for the low turnout of SLPP MPs at the group meeting.

However, Wickremesinghe had also stated to the parliamentary group that Speaker of Parliament Mahinda Yapa Abeywardena had worked in accordance with the Constitution despite claims that he had violated the Constitution. 

The President had hence expressed confidence in the Speaker’s conduct while the parliamentary Opposition submitted a no-confidence motion against the Speaker to the Secretary General of Parliament.


SLPP’s conundrum


The SLPP’s difficulty in finalising the party’s candidate for the upcoming Presidential Election was last week brought to the public domain by senior SLPP Minister Prasanna Ranatunga.

He had noted that the problem faced by the SLPP in facing the upcoming Presidential Election was the need for the party to find a better candidate than President Wickremesinghe in the event the SLPP wanted to field its own candidate.

Ranatunga had observed during a meeting in Udugampola that SLPP’s Basil Rajapaksa would not contest, while it was too early for Namal to contest. “I will support Basil if he contests for the presidency, but he will not contest,” he had said.

Ranatunga said he would have to decide on his SLPP membership if the party decided to field a candidate other than Wickremesinghe.


The clear split


The split in the SLPP over RW’s presidential candidacy has resulted in one faction being led by SLPP MP Namal Rajapaksa and Basil Rajapaksa loyalists while the other group is led by Ranatunga and the SLPP dissidents are led by Anura Priyadarshana Yapa and Nimal Lanza.

This split was visible recently during a meeting of the SLPP convened in the Gampaha District. The meeting was chaired by Namal and organised by State Minister Indika Anuruddha in Divulapitiya. SLPP’s Gampaha District Leader, Minister Ranatunga was a notable absentee at the meeting.

However, following the meeting in Divulapitiya chaired by Namal, Ranatunga had organised a meeting at the Presidential Secretariat to discuss the development of the district and had invited MPs representing Gampaha for it as well.


Expressing confidence


Meanwhile, President Wickremesinghe, in a show of confidence during this meeting with Gampaha District legislators, had stated that the incumbent administration would continue to be in power next year as well.

He had however warned that the Government would lose its grip on governance if Government politicians refrained from visiting the villages and had urged the legislators to utilise the development funds allotted after two years for the upliftment of the villages.


Dhammika for 2024


The SLPP group, which is pushing for a candidate of its own, is once again looking at businessman-turned-politician Dhammika Perera to assume the role of SLPP’s candidate at the upcoming Presidential Election.

Perera, who has openly expressed his intentions of contesting the 2024 Presidential Polls, decided to keep silent after Basil left for overseas last December. While Perera expected the SLPP to announce him as the party’s candidate early this year, the failure to do so by the SLPP due to differences of opinion within the camp resulted in Perera maintaining a low profile.

However, with the push for the SLPP to field its own candidate from a group of SLPPers led by Namal and Basil loyalists, Perera has once again re-emerged as the SLPP’s candidate for 2024.

It is learnt that the idea being discussed within the SLPP ranks these days is to field Perera as the party’s candidate for this year and Namal as the candidate at the next Presidential Elections.

It is also learnt that another reason for some in the SLPP to not want to support Wickremesinghe was the impact such a move could have on Namal’s political future.


Basil’s return


It is in such a backdrop that SLPP Founder and National Organiser Basil Rajapaksa returned to Sri Lanka on Tuesday (5) from the United States at around 8.15 in the morning onboard Emirates Airlines flight EK 650.

Basil was received by Ministers Ranatunga and Rohitha Abeygunawardena and State Minister D.V. Chanaka.

A group of SLPP MPs, including Namal Rajapaksa, Sagara Kariyawasam, Sanjeewa Edirimanna, Prof. Ranjith Bandara, Kokila Gunawardhana, Arundika Fernando, Sahan Pradeep, Jayantha Ketagoda, Indika Anurudda, Thissakutti Arachchi, and Sarath Weerasekara were also at the Bandaranaike International Airport to welcome Basil.

Minister Ranatunga, who led the SLPPers in the welcoming team, was seen engaged in a close conversation with Basil. However, Ranatunga had left the gathering shortly afterwards, saying he had to attend parliamentary proceedings.


Saying no to Parliament


However, Basil had last week said that he did not have any intention of contesting and entering Parliament. 

When asked about the pending elections, he had said that Presidential Elections were due first, but Parliament could be dissolved if needed and a Parliamentary Election could be held. “I will not go to Parliament. It is up to the parliamentarians to decide,” Basil had noted.

He had further noted that whatever the election that was held, he (Basil) would serve as the organiser.

As for the SLPP’s candidate for the Presidential Election, Basil had also reiterated that the party had not made a decision on the matter yet.


MR visits Basil


Meanwhile, SLPP Leader MR had met Basil on Tuesday (5) at the latter’s Battaramulla residence.

MR had visited Basil on Tuesday morning as soon as he had arrived at his residence following the meet-and-greet at the airport.

After greeting Basil, MR had held a brief discussion about the party’s ongoing election preparatory work.

When leaving Basil’s residence, MR had told a group of journalists outside the house that the SLPP was prepared to face any election.


RW, MR, Basil meet


However, there was much focus on the meeting that took place on Thursday (7) night between President Wickremesinghe and the SLPP’s MR and Basil. The discussion between the trio was to be focused on the formation of a broad political alliance between the UNP and SLPP.

During the discussion, Basil had clearly outlined the need for the SLPP to maintain the remaining ground support it had while starting to build its vote bank from this year onwards. He had noted that it was therefore important for the SLPP to stand by party policies, especially on the restructuring agenda.

It is also learnt that Basil had expressed his displeasure over the manner in which some SLPP dissidents working to split the party were receiving State patronage for their work.

Wickremesinghe had however pointed out that the Government’s ongoing work was aimed at resolving the ongoing economic crisis and that the support of as many parties as possible would be required by the next victor at the Presidential Polls.

The meeting had finally concluded without a final outcome.


GR’s book


Meanwhile, soon after Basil’s return to Sri Lanka, another Rajapaksa brother – former President GR – announced the launch of his book.

Titled ‘The Conspiracy to Oust Me from the Presidency,’ it is a first-hand account of an “internationally-sponsored regime change operation,” which would therefore also “be of interest not only to Sri Lankans but also to foreigners”.

“Foreign interventions have weighed heavily on Sri Lanka since we won the war against the Liberation Tigers of Tamil Eelam in 2009. From the time I was elected the President in November 2019, certain foreign and local parties were intent on removing me from power. The entirety of my two-and-a-half-year tenure in power was spent combating the Covid-19 pandemic that swept through Sri Lanka and the whole world soon after I took office. Conspiratorial forces commenced the political campaign to oust me from the presidency at the end of March 2022, after the pandemic had been brought under control, the vaccination campaign had been concluded, and just when the economy was beginning to recover. The political campaign to oust me brought in a new element into the politics of Sri Lanka which has since Independence experienced only peaceful transfers of power following elections. As such, the events of 2022 are fraught with serious implications for the future of this country,” a news release issued by GR’s office stated.


Diplomatic questions


Interestingly, the issue of international conspiracy touched by GR in his book also resulted in some of the diplomatic community questioning details related to the so-called conspiracy and had called on the author to reveal the names.

“Took notice of publications in SL press about the freshly-launched book by G. Rajapaksa, where it’s suggested that foreign ambassadors’ visits to SL military objects should be restricted. Then it needs clarification, the diplomatic representatives of which countries are meant?” the Russian Embassy in Sri Lanka had posted on X.


Vajira’s response


Meanwhile, the UNP’s Abeywardena had stated in response to GR’s book that he would launch another book shortly.

After his compilation of ‘Press vs. Prez,’ Abeywardena is to make the second book due shortly on how his Leader, Wickremesinghe, became the President during the height of the economic crisis in 2022.


Maithri vows ‘chair’ alliance


Meanwhile, Sri Lanka Freedom Party (SLFP) Leader, former President Maithripala Sirisena has vowed to form the SLFP-led alliance under the ‘chair’ symbol of the People’s Alliance (PA) despite various obstacles.

Sirisena has said in Weligama that the SLFP had already held discussions with many political parties and that the SLFP-led alliance would be launched this week.

The office bearers for the political alliance to be led by the SLFP are to be appointed during the course of this week. The SLFP’s Central Committee, which had met on 1 March, has decided to appoint office bearers to the new alliance on Thursday (14).

It is learnt that the Central Committee had decided that the chairmanship and general secretary posts of the new alliance would be vested with the SLFP.


Sajin’s role


Sirisena meanwhile seems to be engaging in a programme to build up his image in the run-up to the election period. Assisting him in the programme is former MR loyalist and Parliamentarian Sajin Vass Gunawardena.

Gunawardena is now one of Sirisena’s closest confidantes and was recently appointed as the SLFP’s Organiser for Ambalangoda.

Last week, Gunawardena had organised a private meet-and-greet between a group of media personnel and Sirisena at his Pelawatte residence. The meeting was aimed at building a close link between Sirisena and the media.

Sirisena held a news conference last Tuesday at the Party Headquarters, where he addressed the media with SLFP Acting General Secretary Dushmantha Mithrapala and Gunawardena by his side.


Common enemy


With the political parties intensifying their campaigns targeting elections, there has now emerged a common enemy – the Janatha Vimukthi Peramuna (JVP)-led National People’s Power (NPP).

It is interesting to see the SLPP, SJB, and the UNP combined focusing on the NPP as its main political opponent, given the intensity of the criticisms levelled against the party and its leaders online and offline.

Some of the campaigns being carried out against the JVP/NPP are aimed at instilling fear among the public by representing incidents from 1988/’89 and 9 May. The notion being created is that now is not the time to try new options while also raising doubts as to how the NPP, with only a 3% vote base, can garner a 51% vote base during election time.

The NPP leadership last week claimed that President Wickremesinghe and his group had launched a campaign to attack the NPP and that several private companies had been assigned the task.


NPP’s plan


The JVP-led NPP meanwhile last week spoke of the party’s plans to raise State revenue. This revelation was made by JVP/NPP Leader Anura Kumara Dissanayake (AKD) amidst allegations by Opposition parties that the NPP had thus far failed to present its proposals on key areas, especially the economy.

AKD has claimed that the party has plans to raise State revenue that have been formulated following discussions with the Inland Revenue Department (IRD).

He had made this statement at the Ratnapura District Women’s Convention last week. 

AKD had noted that State revenue could be increased through the Customs and Excise Departments. “We can find money. We have discussed this with the IRD. There are some changes to be made in the laws, staff, and technology used in the department. If the efficiency of the staff is increased, we can double the revenue generated through the IRD. Revenue generated from the Customs and Excise Departments can also be increased. The Excise Department has some Rs. 90 billion outstanding from liquor manufacturers,” he had been quoted as saying at the rally.

According to AKD, the party has formulated long-term policies on reviving the country’s economy based on several industries, including gem and jewellery, tea, and tourism, as well as agriculture-based industries.


Looking at PM candidate


The ongoing discussion among political parties about the NPP’s policies had recently resulted in a group of parliamentarians seeking more details about the party’s governance structure from NPP MP Vijitha Herath. 

The MPs had asked Herath how many ministers an NPP-led government would have. Herath had explained that there would be 25 cabinet ministers and 25 deputy ministers, but that the ministers’ task would be to implement the programmes presented by an advisory council that would be appointed to each ministry. He said this advisory council would consist of professionals as well as civilian members.

The discussion had then turned towards the General Election. One of the MPs had asked how the NPP planned to send a high number of legislators to Parliament after the next General Election when the party did not have popular figures in many districts.

Herath had then smiled and said that in such a scenario, the party would look at a campaign focused on JVP/NPP Leader AKD, where he would be named as the prime ministerial candidate who would lead an NPP government. “In such a scenario, the votes will be focused on making AKD the prime minister and the popularity of the party’s electoral candidates will not be prominent,” Herath had added.

However, following this discussion, the MPs had informed some seniors in their respective parties about the NPP’s stance. Political circles are now discussing the possibility of the NPP not fielding AKD as the party’s presidential candidate and instead presenting him as the prime ministerial candidate at the next General Election, with the target of forming the next government.


AKD to Canada


Meanwhile, AKD, who is currently engaged in a programme to develop the party’s ties with the international community, is scheduled to make another overseas trip shortly. This time around, AKD is to visit Canada.

It is learnt that he is also expected to meet with the Canadian High Commissioner in Sri Lanka this week prior to his Canadian visit.

A group of foreign envoys in Sri Lanka also met with AKD at the JVP Headquarters last week. The group of envoys had included State of Palestine Ambassador Dr. Zuhair M.H. Dar Zaid, Republic of Turkey High Commissioner R. Demet Sekercioglu, Republic of Bangladesh High Commissioner Tareq Md Ariful Islam, Republic of Indonesia Chief Consul Dewi Gustina Tobing, and Malaysian High Commissioner Badli Hisham Bin Adam.

The key focus of the meeting had been to provide the foreign diplomats with insights into the policies and action plans of the NPP given the current political and economic conditions in the country.


RW’s international ties


President Wickremesinghe’s ‘Children of Gaza’ fund initiative has caught the attention of the Palestinian authorities. This past week Palestinian Ambassador to Sri Lanka Zaid extended his Government’s appreciation for the President’s efforts in launching this fund. 

President Wickremesinghe’s much-discussed international prowess has been at the forefront since taking office in July 2022. While much of the attention has been on the President’s work on the economic front and securing international support for debt restructuring, Wickremesinghe has also turned his attention to geopolitics.

When the war broke out in Gaza in October last year, the Sri Lankan Government was quick to denounce the attacks carried out by Hamas. Since then, President Wickremesinghe has walked a tightrope in balancing relations between the Arab world and longtime ally Israel. 

While the President has continually called for the release of the Israeli hostages held by Hamas, he has also gone a step further and advocated for the establishment of a permanent Palestinian state in the next five years. Having first made this declaration at the Non-Aligned Summit in Uganda in January this year, the call has gained traction. In February, Saudi Arabia publicly stated that it would not establish diplomatic relations with Israel unless a Palestinian state was ensured, while China has also reiterated this stance in recent weeks.

While the President is championing the Palestinian cause, he has continued to balance ties with Israel in an attempt to not alienate Sri Lanka from one of its oldest allies that played an integral role in developing Sri Lanka’s defence apparatus during the civil war. Late last year it was announced that 10,000 workers would be taken to Israel to work in the agriculture sector, while a few weeks back it emerged that Sri Lanka and Israel were exploring options on how best Sri Lanka’s construction industry could get involved in Israel. 

However, credit to the President who, despite maintaining close ties with Israel, has maintained a hard stance with regard to war and continues to support UN resolutions calling for a ceasefire. With Sri Lanka looking to rebrand itself on the international stage, this balancing act in state diplomacy will come as a welcome change to the previous lackadaisical ‘non-aligned’ approach adopted by previous governments.



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